While the West is still concentrating on China's real estate problems, China has moved away from throwing good money after bad by bailing out failing property developers in trouble. As Xi warned, homes are for living, not for speculation and those who speculate should suffer for their own greed. China is moving good money into growth sectors like chips, aviation, infrastructure (not real estate), factory automation and robotics, AI innovation and now military equipment manufacturing.
Having said that, China is not letting up on investments in agriculture, aquaculture and food security. While the world is busy with fighting tariff and trade wars, China is quietly building up its aquaculture and is now the runaway leader in rearing seafood for human consumption. How many are aware of that? China has even been exporting caviar, the much sought after roe delicacy from the sturgeon fish and is killing the traditional exporters from the West. China is now a growing artificial diamond producer, another growth sector. I think I do not have to provide more examples of what goes on behind the scenes, un-noticed while the world is fixated on wars, tariffs and Trump's antics.
China has many avenues for investing in and which have been reaping positive returns successfully.
Anonymous
1 comment:
The military weapons sector is another growth sector that China is indulging in, if China is not already doing so.
China has all the advantage to corner that market. It has abundant rare earth resources and processing logistics, it has all the cheap iron, steel, aluminum and titanium, it has the supply chains to cater to this sector, it has all the engineers and scientists to support its move, all trained over the past decades.
Chinese leaders think far ahead, cornering all the raw materials, building up all the manufacturing logistics, tailoring its education system to support its growth sectors, all carefully selected and prioritized.
The USA and EU leaders think short term, without looking at the long-term consequences. They are bound by business campaign donations, killing the direction for the national good. It is an evil monster dictating the direction of the nation. The fossil fuel lobby was as much the killer of the USA's slow move into EVs, and Trump was a big supporter. Now the EV battle is lost for the USA, and the only way out was erecting barriers and banning Chinese EVs from the market, which will be fruitless. Making expensive EVs just for the domestic market is suicidal. Not being able to find a market outside the USA is fatal.
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